Liberty, Sirius Discuss Stake Options

By

John Jannarone And

Martin Peers

Updated May 31, 2012 6:14 p.m. ET

Sirius XM Radio Inc. flagged the possibility of a negotiated settlement in its battle with shareholder Liberty Media Corp., disclosing the two companies had been in discussions exploring possible transactions around Liberty's stake in Sirius.

Sirius's disclosure, made in a regulatory filing, came after Liberty stepped up pressure on the satellite-radio broadcaster by telling the Federal Communications Commission that it "has...